holding period

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Holding period

Length of time a security is held.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Holding Period

1. In a long position, the period of time during which one owns a security. The holding period is important to calculating an investment's returns and performance. The holding period also applies to taxation on capital gains, as long-term investments are not taxed as heavily as short-term ones.

2. In a short sale, the period of time between the borrowing of securities and the return to their owner. That is, the holding period is the entire time elapsed for all the transactions of a short sale.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

holding period

The length of time during which a security is owned.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Holding period.

A holding period is the length of time you keep an investment.

In some cases, a specific holding period is required in order to qualify for some benefit. For example, you must hold US savings bonds for a minimum of five years to collect the full amount of interest that has accrued.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

holding period

(1) A time period important in the law of adverse possession,with its own peculiar rules for calculation. See adverse possession for more information. (2) A period of time one owns property, important in tax law for determining tax rates and benefits and for disallowance of some benefits.


• Property exchanged in a 1031 exchange by related parties has a 2-year holding period before it can be sold; otherwise there will be adverse tax consequences.

• Banks have a 21-day holding period before sending taxpayer bank deposits to the IRS pursuant to a garnishment.

• Property sold after a holding period of 1 year or less will result in short-term capital gains or losses.

• Property sold after a holding period of more than 1 year will result in long-term capital gains or losses.

• Property sold after a holding period of more than 5 years will result in super-long-term capital gains or losses.

• Property acquired by inheritance will be treated as if it were held for longer than 1 year.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Holding Period

The period of time property has been owned for income tax purposes. The holding period determines if gain or loss from the sale or exchange of a capital asset is long or short term.
Copyright © 2008 H&R Block. All Rights Reserved. Reproduced with permission from H&R Block Glossary
References in periodicals archive ?
The potential increase in the price of Orphazyme's shares will be calculated as the volume weighted average share price as quoted on Nasdaq Copenhagen during the 10 trading days preceding the date of expiry of the performance shares holding period and the date of the grant, respectively.
However, this holding period is against the recommended 5 years investment period.
Upon expiry of the holding period and subject to fulfilment of certain predefined performance targets, the participants will be entitled to receive up to five and a half additional shares in Chr Hansen Holding A/S (matching shares) per investment share against no consideration.
According to him, the investment earned a cash yield of 9pc over the holding period and the sale earned capital gain providing returns close to the projected returns that would have been generated over a much longer period.
The three-year holding period in section 1061 does not apply to income or gain attributable to any asset not held for portfolio investment on behalf of "third-party investors." A third-party investor for this purpose is a person who--(1) holds an interest in the partnership that is not held in connection with an applicable trade or business; and (2) is not and has not been actively engaged (and is not and was not related to a person so engaged) in (directly or indirectly) providing substantial services related to an applicable trade or business to the partnership or any applicable trade or business.
PSX recommends CGT on four levels of holding periods, reducing it from 10 percent tax when the holding period was till one year and concluding at a zero-tax rate for holdings crossing 36 months (3 years).
Furthermore, it appears that past studies generally investigated financial measures in discrete contexts (e.g., return on assets as related to holding period return).
However, for assets other than immovable property declared under the scheme, the holding period shall start from June 1, 2016, for purpose of computation of capital gains.
The IRS found that the taxpayer had originally begun construction for the specific purpose of using the property in the operation of its business, so it qualified as "1231 property." To determine the tax treatment of the sale, it was necessary to determine whether any portion of the project satisfied the applicable holding period. (Note: At time of the ruling, the holding period for 1231 property was six months rather than one year).
For preferred stock dividends attributable to a period or periods aggregating more than 366 days (e.g., cumulative preferred stock with dividends in arrears), the holding period is more than 90 days during the 181-day period beginning 90 days before the stock's ex-dividend date.
This is the first decline in the average holding period for buyout deals since the financial crisis.
It asked the budget makers to abolish 10 percent CGT where holding period of a security is more than 12 months but less than 24 months (tax year 2015).